The management of Waterway Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Waterway changed its method of pricing inventory from last-in, first-out (LIFO) to average-cost in 2020. Given below is the 5-year summary of income under LIFO and a schedule of what the inventories would be if stated on the average-cost method.

WATERWAY INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31
		2016			2017			2018			2019			2020
Salesnet		$14,060			$15,510			$16,670			$18,410			$18,710
Cost of goods sold
Beginning inventory		990			1,100			1,000			1,110			1,230
Purchases		12,950			13,930			15,020			15,790			17,428
Ending inventory		(1,100)			(1,000)			(1,110)			(1,230)			(1,380)
Total		12,840			14,030			14,910			15,670			17,278
Gross profit		1,220			1,480			1,760			2,740			1,432
Administrative expenses		700			760			830			910			990
Income before taxes		520			720			930			1,830			442
Income taxes (50%)		260			360			465			915			221
Net income		260			360			465			915			221
Retained earningsbeginning		1,200			1,460			1,820			2,285			3,200
Retained earningsending		$1,460			$1,820			$2,285			$3,200			$3,421
Earnings per share		$2.60			$3.60			$4.65			$9.15			$2.21

SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31
2015		2016		2017		2018		2019		2020
$1,000		$1,130		$1,110		$1,270		$1,490		$1,720

Prepare comparative statements for the 5 years, assuming that Waterway changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Waterway Instruments started business in 2015. Assume that the number of shares outsanding is 100. (Enter amounts that decrease cost of goods sold using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000). Round all amounts except EPS to the nearest whole dollar, e.g. 5,275. Round Earnings Per Share to 2 decimal places, e.g. 1.62. Round up the tax effects to the next whole dollar.)